Record-Low Unemployment! Record-High Anxiety!

The national unemployment rate is at a 50-year low. In Colorado, the unemployment rate is even lower than the national rate. Great news! Right? If you’re looking to hire talented people, you’ve probably felt some pain trying to recruit in this 50-year record low unemployment climate. And if the employee-benefits package you’re offering hasn’t changed since the last time the unemployment rate was this low, you’re probably also experiencing record-low recruiting results and record-high employee turnover.

When talented candidates are choosing among which jobs to apply for and which offers to accept, it usually comes down to something other than the salary. Salaries are important, but in today’s market salary is only the door-opener. Offering an interesting and competitive benefits package is crucial to attracting and keeping employees who are engaged, focused, and interested in being part of where you and your company are trying to go.

If your company is like most, spending on employee benefits is one of the 3 or 4 biggest numbers on your profit and loss statement. What can you do when you’re already spending that much on employee benefits, yet the people you’re trying to recruit don’t seem attracted by what you’re offering? And who has the time to sift through all the benefit plans that are out there, decide on a plan, and help your employees understand and make the most out of it? For some expert advice on these questions, I turned to my friend Todd Krapf, an employee-benefits specialist at Alliant Insurance.

Todd, who has been in the insurance business his entire career and has lived in Denver for the most-recent 15 of those years, works collaboratively with his clients to develop benefits strategies that match budgets with attractive benefits designed to attract and engage employees. He says, “We create benefits that enhance the culture of the company and add value for the employees.” Todd’s goal is to know what benefits “move the needle” of satisfaction and give value to employees so that they see their company as an employer-of-choice. By becoming an employer-of-choice, the company isn’t faced with much employee disengagement, frustration, or high turnover.

At the outset, Todd asks a couple of important questions: “What do employees get for investing part of their lives in your company?” and “Are you getting the biggest bang for your employee benefits buck?” Todd also finds out where you may be experiencing recruiting, retention, morale, or productivity problems. He analyzes claims data and your existing benefits plans. Next, he meets with as many of your team members as possible to talk about goals and objectives, what’s working and what isn’t, and budgets. After gathering as much information as you can share, Todd and his team work with you to develop ideas and strategy.

When helping clients craft benefit plans that employees value, Todd’s not limited to standard medical, dental, and vision plans. He’s well-versed in creative solutions that help his clients offer things their employees value, like training, professional and personal development, recognition, parental leave, daycare, health savings accounts, transportation, wealth planning, and student loan repayment programs. Todd looks for creative ways to help clients differentiate themselves and meet their employees’ needs. For example, many younger workers owe student loan debt, and Todd has developed partnerships that provide creative payroll-deduction and employee loyalty programs that help employees retire student loan debt.

Todd’s goal is to understand and address what is valuable to the employee. Todd’s team recently began working with a client whose employees, on average, are 26 years old. While going through his discovery process with the client, Todd concluded that income protection is very important to the company’s young employees. Todd and his team worked together with the client to offer paid family leave when an employee is blessed by the birth or adoption of a baby, regardless of whether the employee is the mother or the father. They also created wellness savings accounts that allow employees to use contributions to buy fitness memberships, ski passes, race entries, or other wellness related perks.

Doesn’t this all cost money? Yes, but it doesn’t have to cost more money. Todd’s client, who employs about 70 people, offered a basic life insurance plan and a medical plan that did not include dental or vision benefits. Todd analyzed the market and the plans, and by strategically changing the existing plans significantly reduced the premiums. Todd advised the client to use the premium savings to offer dental and vision benefits, and he advised letting employees purchase benefits for their spouses and children. Todd and his team explained the improvements to the employees, who easily recognized the extra value the employer was giving them – all without increased benefits spending.

Cost doesn’t always mean spending. Todd helped a client recover from the bad decisions of a prior owner who was focused on spending the least amount possible and who created a plan that attracted only the employees who had no other options. Todd recommended a plan that offered a smaller provider network than the existing plan but had lower premiums, a lower deductible, and lower out-of-pocket maximum liability and included co-pays for office visits and prescriptions drugs. Due to the changes, employee participation in the plans increased by 38%, but more importantly employee turnover fell by 40%. The recruiting, onboarding, and training savings were more than the cost of the added benefits. In addition, the company is achieving greater results because of higher employee satisfaction.

Client service doesn’t stop when you’ve announced the plan, though. Todd and his team help explain to employees the value they should receive and help them get the most from the benefits you’re offering. Todd and his team act as advocates for their clients and their clients’ employees. They will handle claim issues on behalf of your company, help your employees in their interactions with the benefits providers, and even help with compliance. They look for ways to help you and your staff do more with less.

When looking for a benefits broker, Todd suggests looking for someone who wants to understand your goals, your company, and your company’s culture. Your broker should be innovative and creative, and they should want to get to know you well so that they can customize offerings and provide valuable solutions. The broker should be able to put themselves in your shoes and figure out the benefits that are most likely to have a positive impact on the company’s culture.

Todd recommends using an employee benefits broker, and this isn’t just because he is one! In Colorado’s small-group fully-insured market (this means companies with fewer than 100 employees), insurance premiums don’t change regardless of whether the client is represented by a broker or not. A broker can save the client lots of time and hassle, and a good broker brings industry know-how and insider-access. You’ll also want to give the broker enough lead time to gain knowledge about your company and understand your goals so that they can make effective recommendations before the start of an enrollment period. Ideally, six months is the lead time needed to go through Todd’s discovery process and allow Todd and his team to provide the best service.

Lots of employee benefits companies use a producer to attract new clients, who are then handed-off to someone else after the sale has been made. With Todd’s team, Todd not only attracts clients but also stays with them throughout the relationship. Todd’s clients engage him to bring ideas, and the most productive relationships are with clients who are open with him and are willing to consider new ideas. “I’ve got a lot of experience,” Todd says, “so earning the client’s trust and learning about them helps me do the best possible job for them.” As an owner himself, Todd can make decisions without having to ask for permission. This also lets Todd focus on serving clients that strive to be an employer of choice.

If you’re interested in learning more or want to get in touch with Todd, please call me and I’ll be honored to connect you.